Canadian Bankruptcy Law Flexibility When Facing Mass Disasters
A new post at Weil’s Bankruptcy Blog includes commentary from Canadian lawyers on bankruptcy law flexibility when confronted with a mass disaster. In short, the recent mass rail disaster in Quebec produced an unexpected set of issues when the rail line sought bankruptcy protection. But under a quirk of old statutory law, railroads were excluded from the bankruptcy regime. Nonetheless, a Quebec judge took jurisdiction under the bankruptcy law, asserting power under equitable principles. The judge likewise issued an injunction protecting an insurer of the railroad. Apparently, however, the flexibility has not yet been challenged.